How Does an Endogenous Growth Model Differ from an Exogenous

question 79

Multiple Choice

How does an endogenous growth model differ from an exogenous model of economic growth?

• A) An exogenous model suggests that governments have a role in developing the economy while an endogenous model ignores the role of the government.
• B) An exogenous growth model assumes that technological development takes place outside
• C) An endogenous model suggests that rich and poor economies will converge over time while an exogenous model suggests that convergence will not occur.
• D) An exogenous model suggests that high capital per worker ratios are preferable while an

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Definitions:

Two-tailed Test

A hypothesis test where the area of interest is in both tails of the probability distribution, allowing for investigating deviations in two opposite directions.

T Distribution

A probability distribution that arises when estimating the mean of a normally distributed population in situations where the sample size is small and population variance is unknown.

One-tailed Test

A statistical hypothesis test in which the region of rejection is on only one side of the sampling distribution, used when the research hypothesis predicts a direction of the effect.

Sample Size

The number of observations or data points collected in a sample from a population for the purpose of statistical analysis.